Yesterday many of us were hit hard by the bombshell announcement that Google plans to ditch Motorola and sell it to Lenovo for $2.91 billion. One day later, and we get a closer look at exactly how Motorola is doing now that the dust has settled and Motorola has had at least a little time to attempt to win folks over with the Moto X, Moto G, and the latest Verizon Droids.
The results for Q4 2013? Not so great, though we can’t say we are too terribly surprised. For Q4 2013 Motorola posted $1.24 billion in revenue, down from $1.51 billion in Q4 of 2012. This led to a $384 million operating loss, versus a $152 million loss a year ago. For those keeping score, that’s total losses of $1.245 billion in Google’s 2013 fiscal year.
It's starting to look like ditching Motorola really is a good move for Google, especially since they are keeping some of the most vital pieces for themselves.
Now to be fair, Motorola has had to spend quite a bit to ‘turn itself around’ in terms of image, branding and setting up its new Moto Maker direction. One could argue that, if they were to have stayed under Google, 2014 could prove to be a much better year. But that’s not what is happening.
Instead, Lenovo will be taking the helm, and will hopefully navigate Motorola successfully into the future. It still remains to be seen what changes Lenovo will make once the Lenovo-Google deal closes, but we doubt that the company is willing to accept a continued loss of a billion or more a year.
Between the news that Nest will reportedly be Google’s core hardware team, Motorola’s continued losses and the reports that Samsung and Google have formed some kind of pact, the pieces are starting to fit together. It’s also starting to look like ditching Motorola really is a good move for Google, especially since they are keeping the most vital pieces for themselves.
Many of us are sad to see the relationship end and concerned for the future of devices like the Moto X and Moto G, but Google clearly has a plan in mind, even if it we aren’t completely sure were it will take Android at the moment.
What do you think of Motorola’s Q4 2013 report? Surprised to see that they are continuing to bleed money? Do you feel that ridding itself of Motorola is the right move for Google? Let us know what you think in the comments.